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The Enactment of Protectionist Measures to Aid Domestic Producers

Question 58

Multiple Choice

The enactment of protectionist measures to aid domestic producers


A) has a muted impact on prices and trade, since it has the effect of increasing interest rates and thus the exchange rate.
B) has a muted impact on prices and trade, since it has the effect of decreasing interest rates and thus the exchange rate.
C) has a muted impact on prices and trade, since it has the effect of increasing interest rates and thus decreasing the exchange rate.
D) has a muted impact on prices and trade, since it has the effect of decreasing interest rates and thus increasing the exchange rate.
E) none of the above.

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